2020-09-30-accounts - Ileostomy And Internal Pouch Association

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Ileostomy and Internal Pouch Association

Registered Charity No. 1172338 (England and Wales) and SC048658 (Scotland) A Company limited by guarantee in England and Wales No. 10375943

ANNUAL REPORT and ACCOUNTS 2020

Because we know, we care

Ileostomy and Internal Pouch Association

(Originally established 1956) Registered Charity No. 1172338 Registered Company No. 10375943

PRINCIPAL ADDRESS AND REGISTERED OFFICE

Danehurst Court, 35-37 West Street, Rochford, Essex SS4 1BE

PRESIDENT:

Professor Gordon Carlson CBE, BSc (Hons), MB ChB (Hons), MD, FRCS, FRCS (Gen), FRCSEd (Ad Hom)

BOARD OF TRUSTEES

Chair: Mr Stuart Hay Vice-chair: Ms Anna Rennie Finance sub-committee chair: Mr Gordon Briars Trustees: Ms Cepta Burke Mrs Alison Crawshaw RGN, BSc, ENB216 (until 16 May 2020) Mr David Drakeley Ms Nicola Gee Mrs Carol Katté RGN, DipN (Lond), NDNCert, ENB216 (from 16 May 2020) Mrs Jacqui Sibbald Mr John Smail Mr Michael Thompson MD, FRCS Ms Tracey Usher

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NATIONAL OFFICERS

Chief Executive Officer and National Treasurer: Mr Michael Bell National Office Manager: Ms Leann Lepley PR Manager: Mrs Caroline Bramwell Journal Editor: Ms Ashleigh Condon HONORARY CONSULTANT ADVISERS Medical adviser: Professor Christopher Probert MD, FRCP, ILTM Gynaecological adviser: Mr Olujimi Jibodu MRCOG Research advisers: Professor Sir Miles Irving DSc (Hon). MD, ChM, FRCS, FMedSci Professor Sir Norman S Williams FRCS, FRCP, FRCPE, FMedSci, FRCA Professor M G Dunlop MD, FRCS, FMedSci, FRSE Professor J R T Monson MD, FRCS, FRCSI, FACS, FRCPS Glas (Hon) Professor D G Morton MD, FRCS (Colorectal) Surgical advisers: Professor Neil Mortensen MBChB, MD, MA, FRCS Eng, FRCS Glas, FRCS Edin, FRCSI Mr Mike Thompson MD, FRCS Dermatological adviser: Dr Calum Lyon MA, MRCP Pharmaceutical adviser: Ms Anne Chetwood PROFESSIONAL ADVISERS Legal advisers: Bates Wells & Braithwaite LLP 10 Queen Street Place London EC4R 1BE Principal bankers: The Co-operative Bank PO Box 250, Delf House, Southway, Skelmersdale WN8 6WT Auditors: Jones Avens Limited Piper House, 4 Dukes Court, Bognor Road, Chichester PO19 8FX Investment manager: Rathbone Investment Management Limited George House, 50 George Square, Glasgow G2 1EH

Annual Report 2020

BOARD OF TRUSTEES REPORT (INCLUDING DIRECTORS’ REPORT)

The Board of Trustees has pleasure in presenting its report for the year ended 30 September 2020. This report represents a Directors’ Report as required by s417 of the Companies Act 2006.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity’s governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS102)” (as amended for accounting periods commencing from 1 January 2019).

LEGAL STATUS AND OBJECTS

Ileostomy and Internal Pouch Association is a Company Limited by Guarantee in England and Wales (10375943) and is a Charity registered in England and Wales no. 1172338 and in Scotland no. SC048658 with a working name of IA. The Charity is governed by its Articles of Association, last amended in August 2018. Although the Company was incorporated on 14 September 2016 it remained dormant until 30 September 2018, with the Charity operating until that date as an unincorporated association registered in England and Wales under charity number 234472 in the name of IA. The Charity’s principal address and registered office is Danehurst Court, 35-37 West Street, Rochford, Essex SS4 1BE.

In setting the Charity’s objectives and planning its activities the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on the relief of those in need by reason of ill-health.

IA's objects are:

To help anyone whose colon has been, or is about to be, removed by surgical procedure or who has an ileostomy or an internal pouch;
To promote and co-ordinate research into bowel disease and other conditions leading to the removal of the colon, surgical procedures pertaining thereto, and related matters, and further to promote the dissemination of knowledge gained by such research;
To keep ileostomists and others informed of all matters of interest to the Charity by the periodic dissemination of information by way of publications, by arranging conferences, seminars and courses on topics of interest, and in any other manner which is charitable and which the trustees consider appropriate.

ORGANISATIONAL STRUCTURE

This charity was originally founded in 1956 and operated as a charitable unincorporated association registered under charity number 234472 until 30 September 2018. Local groups, known as member organisations, located throughout the United Kingdom and Ireland operated as independent charities but under the IA umbrella, with the national charity providing support to the local groups and operating as the governing body of IA through its National Council, which consisted of the honorary president, the national officers and one representative from each member organisation. The National Council elected the president and the other trustees, who operated as the executive committee, which was responsible for the overall and day-to-day administration of the association. Policy matters were referred to the annual meeting of the National Council for consideration and decision.

In 2017 the National Council voted in favour of transferring its undertakings, including all activities, employees and assets subject to all its liabilities in its entirety to a charitable Company Limited by Guarantee, Ileostomy and Internal Pouch Association, company number 10375943 (England and Wales). As part of this organisational restructure, member organisations were given the option of either merging into the national charity and becoming an Integrated Branch (hereinafter termed

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“Branch”) of the national charity or remaining as a separate charity and becoming an Affiliated Member Organisation (hereinafter termed “Affiliate”) of the national charity, with the relationship between the Affiliate and the national charity being governed by an Affiliation Agreement. The Branch option was offered to allow a reduction in the administrative workload placed on the committees of local member organisations, this in turn hopefully alleviating the difficulties in identifying suitable volunteers to sit on the committees of local member organisations. Of the 45 member organisations that existed at the point the transfer to the charitable Company took place at midnight on 30 September 2018, 33 opted to become Branches and 12 became Affiliates. During the year under review, one Affiliate decided to change its status and became a Branch.

The trustees, who are also the directors for the purposes of company law, who served during the year, are listed on page 2. None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The members of the Company consist of the board of trustees and one representative from each member organisation, thereby closely replicating the arrangements that existed under the unincorporated predecessor charity and ensuring that member organisations continue to be central to the charity’s governance and policy setting. There are generally four board meetings a year that take place in London, however, in the year under review two of these meetings took place online instead of in person due to the pandemic. However, this did not affect the Trustees’ ability to discuss important issues and make decisions where appropriate.

Applications for trustee positions are invited from member organisations when a position becomes available. Trustees are elected at a general meeting of the company for an initial period of three years, following which they are eligible for re-election for two further terms of three years. Once elected, they receive an induction which includes visiting the charity’s national office where possible and receiving training as and when required.

Authority for the day to day management of the charity is delegated to the Chief Executive Officer. Mr. Michael Bell, as per the charity’s governing document. Remuneration for all staff including key management personnel is agreed by the remuneration sub-committee. Salaries are reviewed annually by the committee and are benchmarked against similar charities using independent data to ensure that salary levels are appropriate and competitive, whilst taking into account performance, the past year’s achievements and other relevant factors.

The unincorporated association IA (charity registration number 234472 (England & Wales)) remains in existence as a dormant shell charity in order to safeguard any future legacies in its name that might otherwise have failed due to the manner in which a particular will was written and therefore might have been distributed instead to another charity or beneficiary. The Company holds £100 on trust for the unincorporated association and is one of the two trustees of this shell charity, the other being the chair of the Company.

During the year, we said goodbye to our president Professor Neil Mortensen and said hello to his successor, Professor Gordon Carlson. Our sincere thanks go to Professor Mortensen for all of his valuable input over his time as President and we wish him well in his new role as President of the Royal College of Surgeons. We are also very much looking forward to working with Professor Carlson, who will undoubtedly make as valuable a contribution as his predecessors. IA has been honoured to have such prominent surgeons serve as President over the years, a tradition which started right back at IA’s inception with our founder, Professor Bryan Brooke.

ACHIEVEMENT OF OBJECTIVES

To help anyone whose colon has been, or is about to be, removed by surgical procedure or who has an ileostomy or an internal pouch.

During the year 2019/20, the number of general enquiries received at IA national office from members of the public, healthcare professionals and others with a professional interest in the work of IA continued to show an increase as in recent years, with the number of enquiries up by 18%

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year on year. Membership enquiries resulted in 301 joining as full or associate members, 257 (85%) of whom joined on-line which continues to demonstrate a preference to join by this means. However, once again this year there was a slight decrease in new member applications when compared to the same period last year.

Each new member received an information pack containing booklets and leaflets on a wide range of relevant subjects covering many aspects of life with an ileostomy or internal pouch. This literature has been specially written by IA’s honorary consultant advisers and by members with particular experiences and expertise upon which they can draw. A total of 200 requests for literature and publications were received from a combination of healthcare professionals, members and member organisations this year, which was down on the previous year’s total of 353. This is to be expected given the increase in information available online.

Enquiries regarding travel continue to be received although at a lower level than in recent years and there is still a demand our popular travel certificates which, in a range of languages, explain the conditions of ileostomy and internal pouch.

Promotional items were made available to members for distribution at exhibitions, meetings and open days to further publicise the support that is available from IA. In addition, in response to the Covid pandemic, a supply of IA face masks was made available to IA members and advertised through social media, which proved very popular to the extent that a re-order was made to fulfill demand.

There are now 45 member organisations located throughout the United Kingdom. These continue to provide information, advice and assistance to existing, new and potential members. Valuable support was provided by our team of specially trained visitors to those facing surgery, their families, friends and carers.

To promote and co-ordinate research into bowel disease and other conditions leading to the removal of the colon, surgical procedures pertaining thereto, and related matters, and further to promote the dissemination of knowledge gained by such research.

Professor Neil Mortensen Research Fellowship (in association with the Royal College of Surgeons): In order to mark the retirement of our President, Professor Neil Mortensen, IA funded a Research Fellowship in the area of IBD in his name. Following a formal review of the applications received in conjunction with our partner, the Royal College of Surgeons, the successful project titled “Resolving the immunopathology of perianal Crohn’s fistulae” was selected. We look forward to the outcome of this research.

IA continues to support the new National Pouch Registry administered by The Association of Coloproctology of Great Britain and Ireland by providing a grant for the ongoing maintenance of the registry.

DiSCO - Defining Standards in Colorectal Optimisation: IA agreed to fund this research which aims to determine standards that can be used in future “prehabilitation” offered before bowel surgery, leading to better outcomes for patients.

Funding was provided for a project titled “The Plato Project - the influence of surgeon personality on the anastomotic decision” being conducted by the University of Aberdeen and Royal Alexandra Hospital Paisley. The project aims to be the definitive study exploring the role of personality traits on decision making (e.g. stoma formation) in complex cases, where there is currently wide variability amongst surgeons. Further investigation into decision making regarding stomas could lead to improved pre-operative planning for patients undergoing cancer surgery, and may reduce the psychological burden experienced by patients undergoing surgery.

In addition to funded research, IA assisted in a variety of research projects involving members’ participation covering a wide range of subjects, including -

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Dietary intake and pouch: The Psychosocial experience of eating for patients with an Ileal Pouch Anal Anastomosis. A three-phase exploratory qualitative study collecting data via 1) patient one-time focus groups; 2) individual longitudinal interviews with patients; 3) individual one-time interviews with clinicians, to produce a composite insight into the concerns about, and the experience of eating with a pouch, and into the decision-making by patients and clinicians regarding dietary intake. IA assisted with this project with input into some of the project documentation and assisting in the recruitment of patients.
Development of core outcome sets for gastrointestinal recovery after surgery and surgical disease: The aim of this study was to develop core outcome sets for gastrointestinal recovery in the contexts of ileus and small bowel obstruction. An international Steering Group consisting of patient and clinician representatives was established. IA was approached to ensure that the opinion of patients living with a stoma was represented and to help inform the final outcome set.
isPO – integrated, cross-sectoral Psycho-Oncology: The isPO project pursues two primary goals: (1) reducing disease-related anxiety and depression of patients with an initial diagnosis of cancer, and (2) providing a structured psycho-oncological care programme for the comprehensive expansion and implementation in standard oncological care in Germany. Part of this was the creation of a user friendly checklist for the assessment of patient information materials. IA was asked to help with checking whether this material was understandable and usable for patients speaking English as their mother tongue.
The impact of psychology factors and cognitive processes on help seeking behaviour and attitudes towards therapy in individuals with ileostomies and ileal pouch anastomosis: this study examined the impact of psychological factors and cognitive processes on help seeking behaviours and attitudes towards therapy in individuals with ileostomies and ileal pouch anal anastomosis. IA agreed to promote this study via the IA website and social media.
Understanding ileostomates’ response to leakage and the quality of life impacts on them: As noted in last year’s report, this was a patient survey to understand how ileostomates manage leakage and the skin complications that arise, and IA agreed to participate in the production of this survey and the review of the survey responses. The survey has now taken place with over 700 participants and the results are currently being analysed.

To keep ileostomists and others informed of all matters of interest to the Charity by the periodic dissemination of information by way of publications, by arranging conferences, seminars and courses on topics of interest, and in any other manner which is charitable and which the trustees consider appropriate.

IA members place great value on the quarterly Journal which, as the primary form of communication, keeps members updated with the latest developments in products and services. Medical articles and personal stories are regular features in the Journal, as are news items and articles by the national officers, and readers’ letters continue to stimulate interaction within the membership. A recent redesign of the Journal both inside and out has met with a strong positive response from readers, as has the inclusion of a regular article from an exercise expert. Further new ideas will be incorporated into the Journal over the coming year.

One of the most important support mechanisms that IA offers around the country is its visiting service. The number of enquiries coming from stoma care nurses and directly from patients, demonstrates the need for this service to continue. Professional packs containing samples of all of the literature available from IA national office are sent to healthcare professionals throughout the UK. Over the coming year there will be a renewed focus on the visiting service with the aim of further strengthening it to ensure we continue to meet the needs of our members taking into account the way the world has changed since the service was started.

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Following on from the “Introduction to Visiting Skills” course held in Birmingham in February 2019, a further one day introductory level course took place in Liverpool in November 2019, providing those interested with the necessary tools to deal with the increasing number of referrals.

Building on the very successful Kock and Internal Pouch Information Day that was held in Newcastle in September 2019, another combined Kock and Internal Pouch Information Day was held in February 2020. This too was a great success with lots of positive feedback from participants, allowing both members and non-members the opportunity to meet together in both formal and informal settings to discuss issues of common interest, share personal experiences and enjoy talks from healthcare professionals. A further event planned to take place in Birmingham in September 2020 had to unfortunately be cancelled due to Covid-19. This was also the case for a new format Young IA Information Day which had also been planned for June 2020 but again, was cancelled due to the pandemic. It is hoped that these events will take place when circumstances allow.

The timing of the pandemic also meant that our national annual event (historically referred to as our National Council meeting), which was to take place towards the end of March 2020, also had to be cancelled. This was a great disappointment as this event has always proved very popular with member organisations, giving them the opportunity to participate in the various presentations, lectures and workshops that take place as well as socialise with other members and view the exhibition provided by the various stoma equipment manufacturers and suppliers.

Following a collaboration with director and film maker Michael Durban, IA funded the production and eventual launch of a 20 minute documentary film about living with a stoma titled “My Bag and I”. The documentary confronted difficult subjects in an open and honest way, tackling social issues facing ostomates today such as dating, sex, mental wellbeing and day to day living. It met with fantastic praise from ostomates and the public across IA’s social media channels, as well as being shown at various film festivals and nominated for a number of awards.

Media coverage using both TV and radio outlets continued during the year, with various subjects tackled, from the stigma of having a stoma to life after surgery. In addition to traditional media, IA has continued to significantly increase its social media presence through Facebook, Twitter and Instagram.

SERVICES FOR MEMBERS

Services for members and potential members continued, as did the work of the association under the appropriate national officers as listed on pages 2 and 3. At national office, enquiries of a general nature came from potential and existing members, healthcare professionals and commercial companies and working relationships continued with member organisations, Government bodies and associated patient support organisations.

IA's website continues to be a popular source of information to those looking for guidance on living with an ileostomy and internal pouch. However, an upgrade and redesign of the website will shortly be completed with the aim of further improving the value to our members and other interested parties.

Maintaining high level of contact with others in a similar situation continues to be challenging and while many visits were arranged through national office, many more were undertaken through our network of visitors in the local member organisations. IA is very fortunate to be able to access this support throughout the country through teams of volunteer visitors who give their time to offer support to those in a similar situation to themselves.

As noted earlier in this report, the number of enquiries received continues to rise year on year and enquiries were received on wide range of welfare issues such as access to toilet cards and keys and disability benefits, which were handled by national office, with a number of these being

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referred to other organisations for further information where relevant. One applications for a welfare grant was granted.

Matched funding continued to assist member organisations to support local projects such as equipment for hospitals and healthcare professionals. This year grants totalling £804 were paid out under this scheme (see Note 10 on page 31).

As noted above, a Kock and Internal Pouch Information Day was held in London in February 2020. Presentations were given by senior healthcare professionals including surgeons and pouch nurse specialists, as well as those with internal pouches who gave a patient’s perspective of living with a pouch. Feedback from the event was extremely positive. Unfortunately, another one of these Information Days had to be cancelled due to Covid-19, as did a planned Young IA Information Day, which was unfortunate given this was a new event. Both of these events and others will be rescheduled once there is greater certainty as to the status of the pandemic.

GRANT MAKING POLICY

Members of IA benefit from a number of grants which enable them to apply for funding to attend events and purchase essential items.

Bryan N Brooke IA Overseas Travel Fund: Professor Bryan Brooke, IA’s national founding President, wanted to enable ordinary IA members to attend international meetings, which they otherwise might not consider. Therefore, the Bryan N Brooke (IA) Overseas Travel Fund (BBOTF) was set up to assist IA members with their travel costs for overseas meetings and events. The fund was established as Bryan Brooke’s retirement gift from IA and in memory of his contribution as President for over 20 years.
Victoria Wills (IA) Internal Pouch Bursary: This bursary is available for members with an internal pouch to assist with their travel costs to relevant IA meetings and events.
Welfare Fund: This fund has been set up to assist IA members who are experiencing financial hardship to:
 Purchase essential item(s) where ileostomy or internal pouch surgery has directly affected the need for the item(s).
 Provide towards a convalescent break immediately following ileostomy or internal pouch surgery.
 Purchase essential medical equipment which is not covered by a state grant or benefit.
YIA Bursary Fund: The Young IA Bursary Fund has been set up to fund IA members under the age of 40 to attend events in circumstances whereby the IA member may not be able to attend the event through financial hardship.
Research Fund: This fund supports research being carried out throughout the UK. This support can take the form of financial assistance, or promoting awareness of research being carried out that may be of benefit to members.

Each fund has its own set of grant making guidelines which must be adhered to and all applications are assessed by the appropriate executive committee sub-committee. Information and instructions for making an application are available to members, and application forms available from national office.

These grant making activities contribute to the achievement of IA’s aims and objectives by:

Helping those with an ileostomy and internal pouch who are in financial hardship.
Providing a service to its members, and keeping ileostomists and those with an internal pouch informed by giving them the opportunity to attend a variety of conferences, meetings and seminars.
Promoting research by enabling members to attend a variety of research events and/or participate in research activities.

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We continue to encourage the take up of the various grants available as the level of applications has remained low over recent years.

LIAISON WITH OTHER GROUPS

Working relationships with the two other principal ostomy associations in the UK, Colostomy UK (CU) and the Urostomy Association (UA), with internal pouch support groups, with Crohn’s & Colitis UK, and the Breakaway Foundation, continued through joint initiatives at meetings, events and exhibitions. Membership of the European Ostomy Association enabled co-operation with ostomy support organisations in Europe and the worldwide ostomy community. IA is also one of the patient and professional organisations working together in partnership as IBD UK to improve standards of care and treatment for everyone with Inflammatory Bowel Disease.

Mutual benefit was derived from the continued liaison with the Royal College of Nursing, the Association of Stoma Care Nurses UK, the Royal College of Surgeons of England, Guts UK, the National Institute for Health Research, the Kingston Trust, the Association of Coloproctology of Great Britain & Ireland, the Romanian Ostomy Patients’ Support Foundation, the British Healthcare Trades Association, Patients, Industry and Professionals (PIPs) Forum and the Scottish Stoma Forum.

IA was represented at a number of events in the first six months of the financial year, including

A House of Lords reception in November 2019 held to launch “Excellence in Stoma Care”, a report authored by an independent panel of nurses documenting the excellent work that stoma care nurses undertake and the continued importance of the specialist nursing role.
Incontinence Policy and Clinical Forum, supporting the work of APPG on Continence Care in London in November 2019
European Association of Coloproctology Kock Pouch Training Day in Hamburg in November 2019, which was attended by surgeons from UK, Europe and USA and aimed to encourage and train surgeons in Kock Pouch Surgery.

Most events in the second half of the financial year were postponed or cancelled due to Covid-19, although a limited number were held online and IA was represented at them. This included Stories from the Insides Live, which featured live interviews around sport and fitness with a chronic illness, and CCUK’s Patient Involvement in Research Day.

As in previous years, IA planned to exhibit at several large meetings during the year. Once again these were either cancelled or postponed due to the pandemic.

RISK AND RISK MANAGEMENT

The trustees have a risk management strategy which comprises:

The maintenance of a risk register recording all identified risks.
An annual review of the risk register including the principal risks and uncertainties that the charity faces.
The establishment of policies, systems and procedures to mitigate those risks identified in the annual review.
The implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.

This work has identified that the performance of its investments is the major financial risk for the charity. Investment income forms a significant proportion of overall income and any reduction in investment income levels would have an adverse effect on the income available to support day-today operations. This risk is mitigated by retaining expert investment managers, Rathbone Investment Management (Rathbones), on a discretionary basis and ensuring that an investment policy is in place which specifies both the level of risk to be applied to the management of the

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investment portfolio and the approach to income generation. The arrangement with Rathbones is reviewed on an annual basis to ensure that performance continues to meet with the charity’s requirements. An annual review meeting with Rathbones also takes place.

Attention has also been focused on non-financial risks, the principal ones relating to the employment of staff and the potential loss of key staff and officers. The former risk has been mitigated by the engagement of professional legal advice on employment matters, the latter by the creation of contingency plans that include the identification of alternate resources able to assume responsibility should the loss of key people occur.

During the financial year, the Covid-19 pandemic occurred, and the Trustees reviewed the situation on a regular basis to ensure risks caused by this were mitigated as necessary. This included in particular the arrangements around staff working at our National Office, where appropriate Covid-safe procedures were put in place to ensure the safeguarding of our staff’s health and wellbeing, whilst at the same time ensuring that the charity could continue its operational activities without interruption. As part of this, remote working procedures were put into practice. Member organisations were also advised on issues such as holding their regular meetings. Alongside these matters, regular liaison with Rathbones took place to ensure that the income earned from our investments was monitored and that the likely fall in income levels caused by a reduction in dividend payments from the underlying investments could be understood and quantified. The Trustees will continue to closely monitor this situation going forward given that there continues to be ongoing change in many areas. They do not consider that any changes need to be made to the financial statements as a result of the Covid-19 situation.

FINANCIAL RESULTS AND REVIEW

The full accounts of IA are shown on pages 19 to 43. They show the activities of the principal charity and the Branch member organisations but do not include the activities of the Affiliate member organisations, who are separately registered charities responsible for preparing their own accounts in accordance with the appropriate legislation. Until 30 September 2018 the Company remained dormant, with the Charity operating in its previous legal form as an unincorporated association and last year’s accounts for the financial year ended 30 September 2019 therefore included both the fair value of the net assets transferred into the charity from the unincorporated predecessor transfer and also transfers in from Branch organisations, which were included in donations within the Statement of Financial Activities. These items should be borne in mind when looking at the comparative figures presented within these accounts.

The accounts show a deficit of £923,462 in the financial year to 30 September 2020. Of this deficit, £750,688 relates to net losses on investments caused by the large falls in investment valuations due to the Covid-19 pandemic. When these investment valuations are included, a deficit of £772,615 was generated on unrestricted funds whilst restricted funds reported a deficit of £150,847. Taking these results into account, closing assets were £5,339,442.

RESERVES POLICY

The Board of Trustees has determined that the following policies will apply in respect of the various funds held.

General Fund

The General Fund provides resources for the day to day running of the charity and should hold reserves sufficient to cover a minimum of six months’ payments based on the expenses incurred in the last full financial year, plus any future planned additional expenditure.

Designated funds

The Capital Investment Fund, the Elizabeth Clay Memorial Fund and any other designated fund which the Board of Trustees may choose to establish, are intended to provide income for specific

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purposes. The Capital Investment Fund was established to provide income for the General Fund. The Elizabeth Clay Memorial Fund is set aside to provide income for grants to member organisations. All capital in the funds so designated may be spent on the authority of the Board of Trustees. In addition to the designated funds noted above, each Branch member organisation has its own designated fund. Further information on this is provided in the section Branch Funds below.

Restricted Funds

Restricted funds have been established either where the donations received are restricted by the donors, or where the fund has been established for a restricted purpose. In the case of the Welfare Fund and the Bryan N. Brooke (IA) Overseas Travel Fund, the intention is to maintain the capital, adding any donations received, and to spend the income providing grants for the purposes for which the funds were established. All other restricted funds are holding donations until such time as they can be spent in accordance with the restriction. In addition to the named restricted funds, each Branch member organisation has its own restricted fund(s). Further information on this is provided in the section Branch Funds below.

When assessing levels of reserves in each fund, the Board of Trustees ignores unrealised profits on investments, as these are not considered sufficiently reliable to guarantee future spending levels.

Branch Funds

Each Branch member organisation has its own designated fund and restricted fund. All income for a particular Branch is credited to its designated fund, whilst all expenditure for that Branch is taken from its restricted fund until such time as that fund has been exhausted, when expenditure is then set against the branch’s designated fund. Rather than set an individual reserves policy for each Branch and its funds, the Board of Trustees instead monitor the net position of each Branch on an ongoing basis to ensure that sufficient funds remain in each branch to continue their activities for the foreseeable future.

Overall

All fund balances are in line with or exceed their reserves policy. The total funds held by the charity at 30 September was £5,339,442, of which £4,808,855 was held as unrestricted funds and the remaining £530,587 held as restricted funds. Included in unrestricted funds are designated funds of £4,577,749 leaving £231,106 in general unrestricted funds.

INCOMING AND OUTGOING RESOURCES

Income for the year was £453,566, the comparative figure for 2019 being £6,798,840. However, when excluding the fair value of net assets transferred in from the unincorporated predecessor charity from this comparative, the figure was £935,470, of which £513,492 related to the transfer in of funds from branch member organisations as a result of the restructure, so underlying income in 2019 was £421,978. The 2020 result therefore represents a 7% increase on the prior year.

Of this increase, the most significant contributor was income from donations and legacies, which rose from £103,765 in 2019 to £142,888 this year, this being due to a rise in legacy income. It is in the nature of this income stream that levels can fluctuate significantly year on year and are neither controllable nor forecastable.

Further contributing to the 7% increase in overall income was a small rise in income from charitable activities, up to £124,649 this year compared to £119,847 in 2019. The rise in income from advertising in the IA Journal of £4,293 (£45,138 in 2020 compared to £40,845) is gratifying considering the downward trend in recent years. Also included within income from charitable activities, member organisation annual subscription income of £32,274 (2019: £38,986) credited to unrestricted funds relates to the annual charge payable by member organisations to the national charity and includes £27,919 of annual subscription income charges to Branch member

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organisations. As the £27,919 is also a cost to the Branches, the same amount is also included in expenditure on charitable activities as this was charged against the Branches’ individual restricted funds.

Partially offsetting the increases noted above, income from investments was £181,271, down £17,095 from £198,366 in 2019, a 9% decrease. This is to be expected given the economic impact of Covid-19 during the reporting period, which has adversely affected both capital values of investments and dividend payments made by companies worldwide.

Expenditure for the year was £626,340 (2019: £627,287), of that £491,468 (2019: £499,414) being charged to unrestricted funds and £134,872 (2019: £127,873) to restricted funds. Of total expenditure, 97% (2019: 97%) or £608,410 (2019: £609,162) was in support of IA's charitable activities with 3% (2019: 3%) or £17,930 (2019: £18,125) being the cost of raising funds. Of the £608,410 incurred as expenditure of charitable activities, £32,956 (2019: £53,683) related to costs borne by Branches as a result of their charitable activities and charged to their restricted funds.

INVESTMENT POLICY

Investments are shown in the accounts at market value. Up until October 2019, the charity had a single investment portfolio managed under a discretionary management agreement with Rathbone Investment Management using a medium risk stance. In October 2019 £385,000 was transferred from the charity’s bank account in to a new “B” portfolio, this being the investment of a proportion of funds held on behalf of Branches. The “B” portfolio is similarly managed under a discretionary management agreement using a low to medium risk stance.

The charity's investment policy is shown in the Financial Regulations document and is "to hold investments to provide income in support of its core operations". Income generated from the “B” portfolio is credited to Branches taking into account their average funds over the financial year as a proportion of total funds. There are no social, environmental or ethical considerations contained within the investment policy.

As noted above, combined total investment income from both portfolios was £181,271 this year compared to £198,366 in 2019. Net losses on investment stood at £750,688 (2019: net gains of £91,351). Of the total net losses of £750,688, unrealised losses on investments held within the portfolios at year end were £546,575, whilst realised losses on investment sales set off against that figure were £204,113.

Total return on investments over the 12-month period to 30 September 2020 for the main portfolio was -9.97% compared to a virtually identical benchmark return of -9.82%. These negative returns are of course as a result of Covid and its impact on global markets and economies. Nevertheless, longer term performance is still in positive territory, with a return of 5.41% on an annualised basis over the five year period to the end of the September, compared to the benchmark return over the same period of 4.25% annualised. The “B” portfolio, with its more defensive strategy, has declined by 5.15% over the past 12 months to the end of September, ahead of the 6.46% fall of its benchmark reference point.

In accordance with the requirements of the Trustee Act, 2000, Part II, section 4(2), from time to time, the trustees review the investments of the trust and consider whether, having regard to the standard investment criteria, they should be varied. Changes in policy would be reflected in the investment management agreement and in the targets set for IA’s investment managers. There were no changes to the investment policy document during the year.

FUTURE PLANNING

As noted in last year’s report, the Charity’s planned restructure took effect on 1 October 2018 and the Charity began operating in its new legal form as a Company Limited by Guarantee. At that date, the unincorporated predecessor legally transferred all of its undertaking to the new Charity and in addition, the integration of 33 member organisations who opted to become Branches into the new national Charity occurred. Twelve member organisations opted to become Affiliates and

Annual Report 2020

continue to exist as separately registered charities whilst within the IA network and operating within the terms of an Affiliation Agreement between national and local charity.

In part, the restructure was undertaken to ensure that there was the required infrastructure put in place to allow those member organisations who were finding their regulatory and administrative burdens difficult, and that might possibly therefore have been forced to cease operations, to pass that burden on to the national charity and concentrate instead on the important task of supporting their members. Whilst the restructure process was challenging, the Trustees nevertheless felt that its completion would give the Charity firm foundations on which to build a more resilient charity that would be fit for the 21[st] century. Evidence that this was the right approach came this year when one of the Affiliate groups opted to become a Branch, and another Affiliate group is currently discussing this possibility as well, only being delayed by the Covid situation.

Nevertheless, the work continues to ensure that the benefits of the restructure, and the opportunities created by it, are fully realised. The creation of a national set of policies and procedures is part of this process and work continues in this area to ensure these are rolled out in due course across the organisation.

The management committee, which was formed post restructure and consists of senior staff and Trustees, continues to meet regularly to consider matters of both strategic and operational natures, making recommendations to the Board of Trustees where relevant. Overall strategic direction remains with the Board of Trustees as their responsibility and further work in this area is planned over the next 12 months to ensure that the Charity continues to meet the needs of both its members and those connected with them, as well as its charitable objectives.

The ongoing uncertainty caused by Covid-19 does have some potential impact on the charity’s plans for the coming year, in as much as it is not possible at the present time to accurately forecast when it will be possible to hold face-to-face events again. However, the Trustees will continue to monitor the situation closely and further in person events will be arranged when there is some greater certainty as to the direction of travel of the virus. In addition, the possibility of running some events online is being considered to mitigate these problems. Other than this, the Trustees consider that the charity will be able to continue to meet its charitable objectives over the coming year.

CONCLUSION

Even taking into account the negative impacts of Covid-19 and the ongoing uncertainty caused by the pandemic, IA continues to enjoy a significant level of assets which offers a cushion against future problems. All funds remain stable and all activities can continue as planned. The Trustees are satisfied that all known commitments can be met for the foreseeable future.

DISCLOSURE OF INFORMATION TO AUDITOR

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

Annual Report 2020

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF IA

Opinion

We have audited the accounts of IA (the ‘Charity’) for the year ended 30 September 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the accounts, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and the Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the accounts:

give a true and fair view of the state of the charitable company's affairs as at 30 September 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

the Trustees’ use of the going concern basis of accounting in the preparation of the accounts is not appropriate; or
the Trustees have not disclosed in the accounts any identified material uncertainties that may cast significant doubt about the Charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the accounts are authorised for issue.

Other information

The other information comprises the information included in the annual report, other than the accounts and our auditor’s report thereon. The Trustees are responsible for the other information. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

Annual Report 2020

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

the information given in the Trustees’ Report which includes the directors’ report for the purposes of company law for the financial year for which the accounts are prepared is consistent with the accounts; and
the directors’ report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the Trustees’ Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the accounts are not in agreement with the accounting records and returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the Trustees’ Report and from the requirement to prepare a strategic report.

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ Responsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal controls as the Trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Annual Report 2020

Statement of Financial Activities (including income and expenditure account) for the year ended 30 September 2020


	Note	Unrestricted Funds £	Restricted Funds £	Total funds 30/9/2020 £	Total funds 30/9/2019 £ (Note 2)
Income from: Donations and legacies Charitable activities Investments Other income Fair value of net assets transferred in from unincorporated predecessor charity Total income Expenditure on: Raising funds Charitable activities Total expenditure Net income/(expenditure) before gains and losses on investments Net gains (losses) on investments Net income/(expenditure) Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward
	3 4 5 6 7	118,773 124,649 168,660 4,758 -	24,115 - 12,611 - -	142,888 124,649 181,271 4,758 -	617,257 119,847 198,366 - 5,863,370
		416,840	36,726	453,566	6,798,840

	8 9	16,748 474,720	1,182 133,690	17,930 608,410	18,125 609,162
		491,468	134,872	626,340	627,287
		(74,628)	(98,146)	(172,774)	6,171,553
		(697,987)	(52,701)	(750,688)	91,351
		(772,615)	(150,847)	(923,462)	6,262,904
		(772,615) 5,581,470	(150,847) 681,434	(923,462) 6,262,904	6,262,904 -
		4,808,855	530,587	5,339,442	6,262,904

IA has no recognised gains or losses other than those dealt with in the Statement of Financial Activities.

The Statement of Financial Activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

Annual Report 2020

E	E
Balance Sheet asat		30September2020
	Notes	€	Total 3019t2020 €	€	Total 30/9/2019 f
FixedAssets
lntangible assets	15		117		2,9',t9
lnvestments	to		5,295,539		5,717,234
TotalFixedAssets			5,29s,656		5,720,153
Current Assets
Debtors	18	74,490		50,616
Cash on depositandin hand		162,495		642,841
Total CurrentAssets		236,985		693,457
Liabilities
Creditors falling duewithinoneyear	20	193,199		115,040
NetCurrentAssets			43,786		578,4',17
Total assets lesscurrent liabilities			5,339,442		6,298,570
Creditors falling due after more than one year	21				35,666
NetAssets			5,339,442		6,262,904
TheFundsoftheCharity
General unrestricted incomefunds	23&24	4,197,983		4,163,964
Revaluation reserve		610,872		1,417,506
Totalunrestrictedincomefunds			4,808,8s5		5,581,470
Generalrestrictedincomefunds	23&24	501,628		570,137
Revaluation reserve		28,959		111,297
Total restricted incomefunds			530,587		681,434
Total Charity Funds			5,339,442		6,262,904

Statement of Cash Flows for the year ended 30 September 2020


Notes	Total Funds 2020 £	Total Funds 2019 £
26	(332,624)	443,485
	181,271 1,461,553 (1,790,546)	198,366 356,798 (355,808)
	(147,722)	199,356
	(480,346) 642,841 162,495	642,841 - 642,841
	162,495	642,841

Annual Report 2020

Notes to the Accounts for the Year ended 30 September 2020

1 ACCOUNTING POLICIES

Charity information

Ileostomy and Internal Pouch Association is a private company limited by guarantee incorporated in England and Wales. The registered address is Danehurst Court, 35-37 West Street, Rochford, Essex SS4 1BE.

1.1) Basis of preparation and assessment of going concern

The Charity is a public benefit entity and the financial statements have been prepared in accordance with the governing document, the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (as amended for accounting periods commencing from 1 January 2019), the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Act 2011, relevant law and accounting standards.

The charity meets the definition of a public benefit entity under FRS102.

The accounts are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in the financial statements are rounded to the nearest pound.

The accounts have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies are set out below.

All property, assets, rights and charitable undertakings of IA (Ileostomy and Internal Pouch Support Group) (registered charity number 234472) were transferred to Ileostomy and Internal Pouch Association with effect from 1 October 2018.

The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern, and that they have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing these accounts of the incorporated association.

1.2) Income

Income is recognised when the charity has entitlement to the funds, it is probable that the income will be received and the amount of the income can be measured reliably.

Journal advertising is taken on an accruals basis. Donations are recognised when the charity has been notified in writing of both the amount and the settlement date. Legacies are recognised on a case by case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Investment income is recognised on a receipts basis upon notification by the charity's investment manager.

All other income has been taken into account on a cash received basis.

Annual Report 2020

1.3) Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis.

“Raising funds” includes all direct costs incurred in running fundraising events and investment management costs.

“Charitable activities” includes all costs incurred in meeting our charitable objects and providing support and information to our beneficiaries. Half of the costs of the annual meeting (formerly known as the National Council meeting) are charged under this heading since this meeting not only fulfils the requirements of an annual general meeting but also includes activities designed to help representatives of IA’s member organisations to run their charities effectively. Included are updates on research undertaken and other matters important to the running of the charity.

In addition 50% of the costs of our national office are included. The national office of IA not only provides administrative support to the Board of Trustees but also acts as the first point of contact for patients needing our advice and support, as well as supporting IA’s member organisations. For this reason the costs are divided between this category and “governance costs”.

Much of the work of IA is managed by sub-committees of the main board. The costs of their meetings are included as part of our charitable activities. In addition, since the responsibilities of the board include much direct charitable work, 50% of the cost of the board meetings is included as charitable activities.

“Governance costs” include all costs incurred in the financial management of IA. In addition, 50% of the cost of the annual meeting, the running of national office and the meetings of the board are shown here. Any other costs of an administrative nature are also charged to this heading.

Grants for research and other purposes are recognised as soon as a written agreement between the parties confirming the amount committed and the work to be carried out has been made. Provisions for grants for research and other purposes are recognised when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of the grant payable.

1.4) Tangible and intangible fixed assets

Expenditure on tangible and intangible fixed assets is normally charged to revenue in the year of purchase, unless the level of expenditure on individual items would distort the accounts, or if the asset has been donated to a research project while ownership has been retained by IA. In such cases assets are written off on a straight-line basis at rates calculated to reduce their cost to expected residual value over the term of their anticipated useful lives as follows:

Software 33%

1.5) Investments

All investments are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired on or subsequent to the first day of the

Annual Report 2020

financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the statement of financial activities.

1.6) Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7) Financial instruments

The charity has elected to apply the provisions of Section 11 “Basic Financial Instruments” and Section 12 “Other Financial Instruments” of FRS102 to all of its financial instruments.

Financial instruments are recognised in the Charity’s balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at the market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are an obligation to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

1.8) Funds

IA has both unrestricted and restricted funds, but no endowment funds. Two of the unrestricted funds, the Capital Investment Fund and the Elizabeth Clay Memorial Fund, are designated to

Annual Report 2020

special purposes by decisions of the board which can be changed in the future. Each branch member organisation also holds its own designated fund and restricted fund. For the purposes of clarity in these financial statements, all Branch designated funds have been amalgamated into a single reporting line shown as Branch Designated within unrestricted funds and similarly all Branch restricted funds have been amalgamated into a single reporting line shown as Branch Restricted funds under restricted funds.

Unrestricted Funds

General Fund
Capital Investment Fund (designated to provide income for the General Fund)
The Elizabeth Clay Memorial Fund (currently designated to provide grants for member organisations and for specific one-off non-recurring and material items of expenditure)
Branch member organisation Designated funds

Restricted Funds

Research Fund (to provide grants for research projects relevant to our beneficiaries)
Welfare Fund (to provide small financial grants to members)
Bryan N. Brooke (IA) Overseas Travel Fund (established by our founding president, Professor Bryan N. Brooke, to provide grants to assist members to attend related meetings abroad)
Young IA Bursary Fund (to provide grants to young people to attend events which will aid their recovery after surgery)
The Victoria Wills IA Internal Pouch Bursary (established in memory of Victoria Wills to provide grants to those with an internal pouch to attend events which will aid their recovery after surgery)
IA Annual Award for Innovation (established by former executive committee chairman Carolyn Stammers to provide funds for an annual award offered to IA member organisations for innovative ideas and activities).
Branch member organisation Restricted funds

Further details of each fund are disclosed in note 23.

1.9) Operating leased assets

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the statement of financial activities on a straight-line basis over the period of the lease.

1.10) Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

As required by law, the charity offers a workplace pension scheme to all eligible employees. The scheme is operated by the National Employment Savings Trust (NEST) and is a defined contribution scheme with contributions made by both employer and employee. The amount charged to the Statement of Financial Activities in respect of pension costs is the contribution payable by the charity in the year.

Annual Report 2020

1.11) Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and the future periods where the revision affects both current and future periods.

Annual Report 2020

2 ANALYSIS OF PRIOR YEAR TOTAL FUNDS SHOWN ON STATEMENT OF FINANCIAL ACTIVITIES

ITIES

	Note	Unrestricted Funds £	Restricted Funds £	Total funds 30/9/2019 £
Income from: Donations and legacies Charitable activities Investments Other income Fair value of net assets transferred in from unincorporated predecessor charity Total income Expenditure on: Raising funds Charitable activities Total expenditure Net income/(expenditure) before gains and losses on investments Net gains (losses) on investments Net income/(expenditure) Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward
	3 4 5 6 7	102,230 119,847 183,942 - 5,590,163	515,027 - 14,424 - 273,207	617,257 119,847 198,366 - 5,863,370
		5,996,182	802,658	6,798,840

	8 9	16,848 482,566	1,277 126,596	18,125 609,162
		499,414	127,873	627,287
		5,496,768	674,785	6,171,553
		84,702	6,649	91,351
		5,581,470	681,434	6,262,904
		5,581,470 -	681,434 -	6,262,904 -
		5,581,470	681,434	6,262,904

Annual Report 2020

3 INCOME FROM DONATIONS AND LEGACIES


General Fund Elizabeth Clay Memorial Fund Branch Designated funds Total unrestricted funds Research Fund The Victoria Wills Pouch Bursary Branch Restricted funds Total restricted funds Total 2020 Total 2019	Funds transferred in from Branch member organisations	Member organisation donations £	Other donations £	Legacies £	Total 2020 £	Total 2019 £
	- - -	- - -	9,295 - 13,180	13,371 82,927 -	22,666 82,927 13,180	60,918 26,241 15,071
	-	-	22,475	96,298	118,773	102,230
	- - 21,500	500 - -	1,719 - 396	- - -	2,219 - 21,896	1,475 60 513,492
	21,500	500	2,115	-	24,115	515,027
	21,500	500	24,590	96,298	142,888
	513,492	500	35,110	68,155		617,257

As of 1 September 2020, one Affiliate member organisation opted to become a Branch and the transfer of their funds of £21,500 into the national charity is therefore included in donations in the Statement of Financial Activities.

The charity benefits greatly from the involvement and support of its volunteers, details of which are given in our annual report. In accordance with FRS102 and the Charities SORP (FRS102), the economic contribution of general volunteers is not recognised in the accounts.

Annual Report 2020

4 INCOME FROM CHARITABLE ACTIVITIES

Unrestricted funds £	Restricted funds £	Total 2020 £	Total 2019 £
45,138 - 32,274 47,075 162 -	- - - - - -	45,138 - 32,274 47,075 162 -	40,845 9,961 38,986 29,674 156 225
124,649	-	124,649	119,847
119,847	-	-	119,847

Income of £32,274 shown above under unrestricted funds as member organisation annual subscriptions includes £27,909 in relation to annual subscription charges levied on Branch member organisations by the charity. A corresponding expense of £27,909 is included under charitable expenditure to reflect the cost to the individual Branches’ restricted funds. As such, the overall net effect of these items on the charity is zero.

5 INVESTMENT INCOME

Investment and interest income was £181,271 (2019: £198,366) of which £168,660 was unrestricted (2019: £183,942) and £12,611 was restricted (2019: £14,424). It came from the following sources:

UK listed investments Bank interest Total
	2020 £	2019 £
	181,271 -	198,166 200
	181,271	198,366

6 OTHER INCOME

6 OTHER INCOME

Coronavirus Job Retention Scheme grant Total	2020 £	2019 £
	4,758	-
	4,758	-

Annual Report 2020

7 FAIR VALUE OF NET ASSETS TRANSFERRED IN FROM UNINCORPORATED CHARITY

Funds transferred in from unincorporated predecessor charity at 1 October 2018 – IA (Ileostomy and Internal Pouch Support Group)	Unrestricted Funds 2019 £	Restricted Funds 2019 £	Total Funds 2019 £
	5,590,163	273,207	5,863,370

All the property, assets, rights and charitable undertakings of IA (Ileostomy and Internal Pouch Support Group) (registered charity 234472) were transferred to Ileostomy and Internal Pouch Association with effect from 1 October 2018. The fair value of the net assets transferred has been recognised as income in the Statement of Financial Activities.

8 EXPENDITURE ON RAISING FUNDS

Investment management costs Online fundraising costs Total
	2020 £	2019 £
	17,352 578	17,547 578
	17,930	18,125

Expenditure on raising funds was £17,930 (2019: £18,125) of which £16,748 was unrestricted (2019: £16,848) and £1,182 was restricted (2019: £1,277).

Annual Report 2020

9 EXPENDITURE ON CHARITABLE ACTIVITIES

9 EXPENDITURE ON CHARITABLE ACTIVITIES
IA Journal (including distribution costs) Grants and donations Annual (National Council) meeting (apportioned) Internal Pouch Group activities Visitor training Publicity & promotion Information sheets & booklets National office (apportioned) Charitable activities Branch member organisation activities Support costs Governance costs Total	Note	2020 £	2019 £
	10 11 12	53,738 105,523 476 2,782 807 89,942 1,187 159,609 3,028 32,956 12,684 145,678	61,658 65,717 13,068 2,642 1,620 95,345 3,178 131,684 6,057 53,683 18,149 156,361
		608,410	609,162

In 2020, expenditure on charitable activities was £608,410 (2019: £609,162), of which £474,720 was expenditure from unrestricted funds (2019: £482,566) and £133,690 was expenditure from restricted funds (2019: £126,596). Expenditure of £32,956 shown above as Branch member organisation activities includes £27,909 in relation to annual subscription charges levied on Branch member organisations by the charity. Corresponding income of £27,909 is included under charitable income to reflect the income due to the unrestricted funds of the charity. As such, the overall net effect of these items on the charity is zero.

Annual Report 2020

10 GRANTS AND DONATIONS

10 GRANTS AND DONATIONS

Grants to individuals Grants to institutions and organisations (see below) Grants to IA member organisations Other donations	2020 £	2019 £
	11,880 91,709 804 1,130	1,460 62,943 1,303 11
Total	105,523	65,717

Recipients of grants to institutions and organisations were:

Recipients of grants to institutions and organisations were:
	£
University of Aberdeen/Royal Alexandra Hospital Paisley: ThePlato Project -theinfluence of surgeon personalityonthe anastomotic decision	5,789
The Association of Coloproctology of Great Britain and Ireland: Grant for maintenance of the new National Pouch Registry	10,000
University of Glasgow/Royal Alexandra Hospital Paisley: DiSCO - Defining Standards in Colorectal Optimisation	10,920
Professor Neil Mortensen Research Fellowship (in association with the Royal College of Surgeons): Resolving the immunopathology of perianal Crohn’s fistulae	65,000

11 SUPPORT COSTS

11 SUPPORT COSTS

IA Journal Annual (National Council) meeting (apportioned) Publicity & promotion Internal Pouch Charitable activities Total	2020 £	2019 £
	2,972 380 4,793 30 4,509	1,817 8,202 4,135 - 3,995
	12,684	18,149

Annual Report 2020

12 GOVERNANCE COSTS

12 GOVERNANCE COSTS
National office (apportioned) Annual (National Council) meeting (apportioned) Other administrative meetings Audit fee Insurance Bank charges & currency costs Legal costs Other expenses Total	2020 £	2019 £
	118,590 96 2,541 3,600 2,690 1,056 7,078 10,027	106,528 5,117 5,102 5,175 2,680 1,073 14,831 15,855
	145,678	156,361

IA has Trustee Indemnity Insurance to indemnify the trustees and other officers against the consequences of any neglect or default on their part and to cover the trustees of IA's member organisations. The cost of this insurance is £2,690 (2019: £2,680) and is shown above.

13 ANALYSIS OF STAFF COSTS AND REMUNERATION OF KEY MANAGEMENT PERSONNEL

PERSONNEL

Salaries and wages Social security costs Pension costs Other benefits Agency/contract staff Total	2020 £	2019 £
	174,597 13,238 17,473 4,608 15,297	144,764 11,608 22,511 2,129 2,512
	225,213	183,524

The average number of employees during the year was 6 (2019: 4) with all employee time involved in providing either support to the governance of the charity or support to charitable activities.

Annual Report 2020

The number of employees receiving total employee benefits (excluding employer pension costs) in excess of £60,000 were

Total employee benefits (excluding employer pension costs)	2020	2019
£60,001 - £70,000	1	1

The charity considers that its key management personnel comprise the trustees, the Chief Executive Officer and the National Officer Manager. The total employee benefits of the key management personnel were £114,883 (2019: £126,208).

14 PAYMENTS TO TRUSTEES AND RELATED PARTY TRANSACTIONS

The trustees all give freely of their time and expertise without any form of remuneration or other benefit in cash or kind (2019: nil). Trustees were reimbursed expenses incurred in performing their duties as board members, as follows -

Eight trustees (2019: 15) were paid £4,938 (2019: £8,540) for travelling, postage, telephone, stationery and other costs incurred in fulfilling their voluntary activities. No trustees received remuneration for providing services to the charity.

Total donations received without conditions from trustees were zero (2019: £1,600).

15 INTANGIBLE FIXED ASSETS

Software Cost At 1 October 2019 Additions At 30 September 2020 Amortisation At 1 October 2019 Charge for the year At 30 September 2020 Net book value At 30 September 2019 At 30 September 2020
	Total £
	6,211 -
	6,211
	3,292 2,802
	6,094
	2,919 117

Annual Report 2020

Software comprises the membership database purchased to administer the membership records of the charity. Development costs which enhance the functionality of the software are capitalised. Costs for the software are amortised over a three year life from the date the expenditure was incurred, with amortisation included within expenditure on charitable activities in the statement of financial activities. The trustees have chosen to amortise such costs over a three year period as in their opinion this most accurately reflects the life of all software, which is inherently limited due to ongoing product development and the retirement and replacement of current software products with new improved versions .

16 FIXED ASSET INVESTMENTS

Movements on investments for the year ended 30 September 2020 were as shown below.

Market value basis Quoted investments Brought forward Transferred in from unincorporated predecessor charity at 1 October 2018 Additions Disposals at carrying value Unrealised gains/losses At market value 30th September At cost 30 September
	2020 £	2019 £
	5,717,234 - 1,790,546 (1,666,568) (545,673)	- 5,626,873 355,808 (385,503) 120,056
	5,295,539	5,717,234
	4,655,708	4,188,431

Prior to October 2019, all investments were held in a single main portfolio, with investments allocated to funds on the basis of the cost input by each fund. At 1 October 2019, the split was as follows:

follows:

Capital Investment Fund	87.54%	Research Fund	6.64%
General Fund	0.00%	Welfare Fund	0.46%
Elizabeth Clay Memorial Fund	5.18%	Bryan N. Brooke (IA) Overseas Travel Fund	0.18%

In October 2019, £375,000 was transferred from the charity’s bank account into a new “B” portfolio, this being the investment of a proportion of funds held on behalf of Branches in order to generate an income for these Branches. The main portfolio continued to operate using the split noted above.

The table above showing movement on investments for the year represents the combined investments held on both the main and “B” portfolios.

The cash held within the investment portfolios is £14,535 (2019: £13,633). All the investments are quoted on the UK Stock Exchange. IA does not hold any investments outside the UK. Looking at

Annual Report 2020

the combined investment portfolios, there are three investments which exceed 5% of the total market value as at 30 September 2020 as detailed below. There are no restrictions on the realisation of any investment held by the charity.

Holding: Treasury 0.125% Index Linked 2029

BY Mellon Global Income Sarasin Global Higher Dividend

Market value: £318,083 Market value: £308,631 Market value: £284,009

17 FINANCIAL INSTRUMENTS

Carrying value of financial assets Instruments measured at fair value through profit and loss	2020 £	2019 £
	5,295,539	5,717,234

18 DEBTORS

18 DEBTORS
Amounts falling due within one year: Legacies due Prepayments Other debtors Due from branch member organisations Rent deposit Total
	2020	2019 £
	- 4,539 24,110 42,341 3,500	4,076 3,539 18,660 20,841 3,500
	74,490	50,616

19 CASH ON DEPOSIT AND IN HAND

The balance shown includes an amount of £100 held on trust for the unincorporated predecessor charity, IA (Charity Commission (England & Wales) registration number 234472).

Annual Report 2020

20 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Accruals Deferred income Research projects Taxation and social security Due to branch member organisations Other creditors Total
	2020 £	2019 £
	30,601 1,012 146,333 4,585 638 10,030	19,349 - 50,667 4,226 1,054 39,744
	193,199	115,040

21 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Research projects Total
	2020 £	2019 £
	-	35,666
	-	35,666

22 RETIREMENT BENEFIT SCHEMES

Defined contribution schemes

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The company contributes a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the company with respect to the scheme is to make the specified contributions.

The charge to profit or loss in respect of defined contribution schemes was £17,473 (2019: £22,511). The creditor at the balance sheet date relating to this scheme is £1,766 (2019: £1,751).

Annual Report 2020

23 ANALYSIS OF CHARITABLE FUNDS

For the financial year ended 30 September 2020

Balance 1/10/19 £	Income £	Expenditure £	Gains/ (losses) on investment assets £	Transfers between funds	Balance 30/9/2020 £
228,533 5,081,291 227,740 43,906	258,164 - 91,897 66,779	488,819 - 1,462 1,187	- (660,501) (37,486) -	233,228 - (233,228) -	231,106 4,420,790 47,461 109,498
5,581,470	416,840	491,468	(697,987)	-	4,808,855
173,095 35,466 20,221 5,230 1,813 571 445,038	13,722 791 317 - - - 21,896	92,787 574 284 - - - 41,227	(48,070) (3,308) (1,323) - - - -	- - - - - - -	45,960 32,375 18,931 5,230 1,813 571 425,707
681,434	36,726	134,872	(52,701)	-	530,587
6,262,904	453,566	626,340	(750,688)	-	5,339,442

The transfer of £233,228 between the Elizabeth Clay Memorial Fund and the General Fund was made to bring the level of General Fund reserves back into line with the charity’s reserves policy.

Annual Report 2020

For the financial year ended 30 September 2019

Income - Transferred in from unincorporated predecessor charity at 1/10/2018 £	Income £	Expenditure £	Gains/ (losses) on investment assets £	Transfers between funds	Balance 30/9/2019 £
192,644 5,001,319 396,200 -	325,720 - 36,501 43,798	478,412 - 21,110 (108)	- 79,972 4,730 -	188,581 - (188,581) -	228,533 5,081,291 227,740 43,906
5,590,163	406,019	499,414	84,702	-	5,581,470
210,871 34,954 19,724 5,230 1,753 675 -	14,632 905 362 - 60 - 513,492	58,473 810 32 - - 104 68,454	6,065 417 167 - - - -	- - - - - - -	173,095 35,466 20,221 5,230 1,813 571 445,038
273,207	529,451	127,873	6,649	-	681,434
5,863,370	935,470	627,287	91,351	-	6,262,904

The transfer of £188,581 between the Elizabeth Clay Memorial Fund and the General Fund was made to bring the level of General Fund reserves back into line with the charity’s reserves policy.

Annual Report 2020

24 ANALYSIS OF NET ASSETS BETWEEN FUNDS

For the financial year ended 30 September 2020

Fixed Assets £	Net Current Assets/ (Liabilities) £	Long Term Liabilities £	Total 30/9/2020 £
- 4,331,075 256,399 -	231,106 89,715 (208,938) 109,498	- - - -	231,106 4,420,790 47,461 109,498
4,587,474	221,381		4,808,855
328,517 22,758 8,906 - - - 348,001	(282,557) 9,617 10,025 5,230 1,813 571 77,706	- - - - - - -	45,960 32,375 18,931 5,230 1,813 571 425,707
708,182	(177,595)	-	530,587
5,295,656	43,786	-	5,339,442

Annual Report 2020

For the financial year ended 30 September 2019

Fixed Assets £	Net Current Assets/ (Liabilities) £	Long Term Liabilities £	Total 30/9/2019 £
- 5,004,867 299,072 -	228,533 76,424 (71,332) 43,906	- - - -	228,533 5,081,291 227,740 43,906
5,303,939	277,531		5,581,470
379,624 26,299 10,291 - - - -	(170,863) 9,167 9,930 5,230 1,813 571 445,038	(35,666) - - - - - -	173,095 35,466 20,221 5,230 1,813 571 445,038
416,214	300,886	(35,666)	681,434
5,720,153	578,417	(35,666)	6,262,904

Unrealised gains on investment assets included above:

Unrestricted funds Restricted funds Total
	2020 £	2019 £ 1,417,506 111,297 1,528,803
	610,872 28,959
	639,831

25 OPERATING LEASE COMMITMENTS

The charity entered into a lease for the rental of office premises at Danehurst Court, Rochford on 27/1/2016. The lease term was for a period of 5 years with a break clause for the charity only after 3 years. A rental of £14,000 was payable per annum for the first 3 years of the lease with a rent review after that period based on the rise in the Retail Price Index (RPI) during the lease term. This rent review occurred in January 2019 and a new rental of £15,336 per annum payable from

Annual Report 2020

27/1/19 was agreed at that time. An annual service charge of £1,000 is also payable. A security deposit of £3,500 was paid on the inception of the lease which is returnable at the expiry of the lease term. This amount is disclosed in note 18 above.

The amount charged to expenditure on charitable activities in relation to the lease was £16,336.

The charity has the following future minimum payments under this lease for each of the following periods:

periods:
Payment due	2020 £	2019 £
No later than one year Later than one year and not later than five years Total	4,814 -	16,336 4,814
	4,814	21,150

The charity had no other off-balance sheet arrangements.

26 RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

OPERATING ACTIVITIES

	2020 £	2019 £
Net income/(expenditure) for the reporting period (as per the statement of financial activities) Adjustments for: Deduct intangible fixed assets transferred in from unincorporated predecessor charity included in income Deduct fixed asset investments transferred in from unincorporated predecessor charity included in income Add back depreciation on intangible fixed assets Deduct interest income shown in investing activities Deduct gains/add back losses on investments Loss/(profit) on the sale of investments (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash used in operating activities	(923,462) - - 2,802 (181,271) 546,575 204,113 (23,874) 42,493	6,262,904 (6,211) (5,626,873) 3,292 (198,366) (106,983) 15,632 (50,616) 150,706
	(332,624)	443,485

Annual Report 2020

27 ANALYSIS OF CHANGES IN NET FUNDS

The charity had no debt during the year.

28 MEMBER ORGANISATIONS’ ACCOUNTS

Branch member organisations’ activities are included in these financial statements. Affiliate member organisations, being separately registered charities, prepare their own accounts in accordance with the appropriate legislation and are accordingly not included in these financial statements.

As noted in notes 4 and 9 above, annual subscription charges of £27,909 were charged to Branch member organisations by the charity and as a result, both charitable income for unrestricted funds and charitable expenditure for restricted funds have been increased by this amount to reflect those transactions. The overall net effect on the charity is zero.

Annual Report 2020